INTERNATIONAL RETAILERS LOOK TO THE LOCAL

Norstrom Local and even IKEA are looking to plug into communities right where they live.

Bijou fashion retailer Nordstrom, opened its first small footprint (3,000ft2) Nordstrom Local store last year in the fashionable West Hollywood area of Los Angeles (see photos).

Assuming the first is proving popular, now we hear there will be two more Nordstrom Locals in other LA locales and another in New York.

Just 2% the scale of a normal Nordstrom store, Nordstrom Local is designed as a “neighbourhood hub where customers can shop and access Nordstrom services in a convenient, central location”.

Like Angela Ahrendt's new Apple stores, Nordstrom Local is about “Finding new ways to engage with customers on their terms”.

Nordstrom Local has no inventory.

Instead, Personal Stylists can transfer in merchandise for customers, as well as offer a suite of convenient services (like same-day click & collect), on-site alterations and tailoring, manicure appointments and more.

Customers will also be able to make returns at Nordstrom Local from Nordstrom stores and Nordstrom.com.

Some pundits have even used the term “hyper-local” with reference to this style of retailing.

"Hyper-local"?

Yes, sir – each Nordstrom Local’s decor and services will be personalised to the particular neighbourhood’s needs and tastes…

IKEA is also going local with small format stores

Famous for its almost one-size-fits-all approach to bricks & mortar, after several years exploring aspects of scale, IKEA is now said to be putting firm plans in place to open smaller format stores.

Driven by IKEA UK, the first small-format store represents the first step in a "revised strategy, which will focus on city centres, enhanced customer services and digitalisation" and will open on Tottenham Court Road in central London this autumn.

The store will specialise in kitchens and wardrobes and will offer a mix of digital and in-person support towards “a relaxed and professional experience in which to plan more complex or large-scale projects in the home, with the expertise and specialist support of IKEA co-workers, alongside a great service package and delivery offer.”

The model may also preface a 24-hour delivery promise and, once proliferated, could possibly act as a network of local delivery hubs.

The smaller model also has the advantage of being light on its feet in a capex sense and quick to establish, given the availability of appropriate sites.